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Topic of the Day: Should Nokia Drop Meego and roll with Android?
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mikec
2010-07-10 , 09:03
Posts: 1,366 | Thanked: 1,185 times | Joined on Jan 2006
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Some additional information to throw into the mix from Motorola's 10K statement Q1 2010 as an example of a company moving to Android.
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• In Mobile Devices: Net sales were $1.6 billion in the first quarter of 2010, a decrease of 9% compared to
net sales of $1.8 billion in the first quarter of 2009. The decrease in net sales was primarily driven by a
42% decrease in unit shipments, partially offset by a 57% increase in average selling price (‘‘ASP’’). We
shipped 8.5 million handsets in the first quarter of 2010, a 29% decrease sequentially compared to
shipments of 12.0 million handsets in the fourth quarter of 2009. We shipped 2.3 million Android-based
smartphones in the first quarter of 2010, a 15% increase sequentially compared to shipments of
2.0 million in the fourth quarter of 2009. On a geographic basis, net sales decreased in Latin America,
Asia, and the Europe, Middle East and Africa region (‘‘EMEA’’), partially offset by increased net sales in
North America.
And from Motorolas Annual report
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"Our strategy for the Mobile Devices business may be too concentrated on certain products.
The product portfolio in the Mobile Devices business is extensively targeted at the smartphone market, with
particular concentration on smartphones using an Android-based operating system. These products are an
important part of the business plan. If such Android-based smartphones do not remain competitive in the
marketplace, our financial performance would suffer and a shift in strategy would be costly and difficult."
"If our operating system strategy is not successful, our Mobile Devices business could be negatively impacted.
We have made a strategic decision to use third-party and/or open source operating systems, such as Google’s
Android operating system in our wireless products. As a result of this, we are at risk due to our dependency on
third parties’ continued development of operating systems and third parties’ software application ecosystem
infrastructures. With respect to Google’s Android operating system, which is a newer operating system for
wireless handsets, in the event that Google’s Android team no longer develops the Android code base and this
development is not taken up by the open source community, this would increase the burden of development on
Motorola. From an overall risk perspective, the industry is currently engaged in an extremely competitive phase
with respect to operating system platforms and software generally. Android is viewed as a competitive platform in
the Linux and smartphone categories. If (i) Android fails to continue to gain operator and/or developer adoption,
or (ii) any updated versions or new releases of Google’s Android operating system are not made available to
Motorola in a timely fashion, Motorola could be competitively disadvantaged and the Company’s financial results
could be negatively impacted."
Just some thoughts from people who have to run a business...
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